Trump/Cook, Nissan weakness, more tariffs and gold - what’s moving markets
On Monday, Cantor Fitzgerald analyst Brett Knoblauch revised the price target for MicroStrategy Incorporated (NASDAQ:MSTR) to $614 from the previous $619, while maintaining an Overweight rating on the stock. According to InvestingPro data, the stock has delivered an impressive 222% return over the past year, with analyst targets ranging from $175 to $650. Current analysis suggests the stock is trading above its Fair Value. MicroStrategy has continued to expand its Bitcoin holdings into the first quarter of 2025, purchasing 80,715 Bitcoin at a total cost of $7.67 billion. This acquisition has increased the company’s total Bitcoin treasury to 528,185. InvestingPro analysis reveals the company’s volatile price movements and moderate debt levels, with a Financial Health Score of "FAIR." For deeper insights into MicroStrategy’s financial position and growth potential, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
To fund these purchases, MicroStrategy raised $7.69 billion by issuing common equity, convertible notes, and preferred shares. Since the close of the quarter, the company has further grown its Bitcoin holdings to 553,555, valued at $52.6 billion with Bitcoin’s price at $95,000 each. Additionally, MicroStrategy has raised its Bitcoin yield target for 2025 to 25% from the previous 15%.
The company’s Bitcoin yield is linked to the premium of its stock over the net asset value (NAV) of its Bitcoin holdings. MicroStrategy sells its stock at a value higher than the underlying Bitcoin, allowing the company to enhance its Bitcoin per share and acquire more Bitcoin than the equity sale dilution. The analyst believes that with a positive outlook for Bitcoin in 2025, MicroStrategy will be able to maintain its NAV premium and continue to make accretive Bitcoin purchases for its shareholders.
As of the close on Friday, MicroStrategy’s stock was trading at a year-to-date high in terms of equity premium, reaching 107%. This performance is seen as a positive indicator for the company’s ability to meet its increased Bitcoin yield target. Despite the slight decrease in the price target, the Overweight rating suggests continued confidence in MicroStrategy’s stock performance. InvestingPro data shows strong momentum with a 73% return over the past six months and a market capitalization of $105 billion, though investors should note that analysts don’t expect profitability this year.
In other recent news, MicroStrategy Incorporated reported a significant earnings miss for the first quarter of 2025, with earnings per share (EPS) at -16.53 compared to the forecasted -0.11, and revenue at $111.1 million, falling short of the anticipated $117.08 million. Despite this, the company remains the largest corporate holder of Bitcoin globally, with plans to increase its Bitcoin yield target from 15% to 25% and its Bitcoin dollar gain target from $10 billion to $15 billion. In response to MicroStrategy’s revised 2025 guidance and capital raising strategy, H.C. Wainwright analyst Mike Colonnese raised the company’s stock price target to $521, while maintaining a Buy rating. Additionally, Benchmark analysts reiterated a Buy rating with a $650 price target, valuing the company based on its Bitcoin holdings and software business. These developments reflect a positive outlook from analysts, who cite MicroStrategy’s strategic investment in Bitcoin and its treasury operations as key factors supporting shareholder value. The company’s ambitious capital increase plans aim to support growth and investment through 2027, doubling the planned amount to $84 billion. Investors and analysts continue to closely monitor MicroStrategy’s performance, especially given its significant exposure to cryptocurrency markets.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.